Imagine that you've just lost your job. Maybe you have a family to feed. Maybe you're taking care of sick parents. Maybe you've gotten very ill and don't have health insurance. You have little saved, lots of debt. To survive this crisis, Now is the time for specific actions that can help remedy the situation before it gets worse. And you can do it without applying for government aid.

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Steps

1

Assess your financial strengths. Find out how much money you have in your checking and savings accounts, your retirement plan, and any other sources of income.

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2

Estimate the value of your house, cars, and any other major property.

3

Find out your total debts from mortgages, credit cards, and student loans.

Send regular token payment amounts Even $20 once a month- can sometimes delay utility shut-offs for weeks. Creditors are usually more forgiving if you show you've attempted to pay a little. Again, try to negotiate lower monthly payments until your situation changes. Don't accept an initial "no" response-- ask to speak with a manager or supervisor, and keep insisting on lower payments.

6

Change your buying and shopping habits immediately. Cancel unnecessary memberships to fitness centers, DVD rental clubs, and other monthly recurring-cost entertainment. Check to make sure that you don't incur more charges if you must break a contract early.

7

Decide now that you won't go out to eat at a restaurant until your situation changes (for example, when you get a new job). This can save you 50-70% on food costs.

8

Overhaul your grocery shopping habits. If you shop at upscale markets, switch to discount supermarkets. Switching to store brands or off-brands can save an additional 10% to 20%.

9

Don't shop unless you need to. You can probably postpone buying clothes for many, many months. If you must buy something, go to a second-hand store or to a close-out store.

10

Ride share or take the bus to reduce transportation costs.

11

Consider taking on a room-mate or renter. This can cut housing costs by 20% to 50%.

12

If you're in a profession where you can consult or free-lance, start doing it. Use social networking sites to let people know your current situation, your work skills and what you can do for them

13

Take on odd jobs like landscaping, baby-sitting, waiting tables, or bar-tending while you're working on finding a career-related position. Forget the myth that employers will judge you negatively for working non-career related positions.

14

Update your resume and portfolio. Post it online if you haven't already. Again, use social networking to let people know you're ready to work for them, and link to your resume.

15

Register at several temporary employment agencies. They might not have regular work or career related work, but sometimes short assignments will help when you're in a pinch.

16

Have a garage sale or auction the household items you aren't using.

17

Be honest with your family. Some Extra-curricular activities (music lessons, summer camp) might have to be cut in order to sacrifice for the good of the family. Encourage the kids to get part-time jobs, and if they are over age 18, they should pay rent (if they work irregularly, ask for 15-20% of a paycheck, rather than a fixed monthly price).

18

If it makes sense (if you'll save at least 55%), sell your expensive new car and buy a reliable older car. An example would be to sell your $22000 car and then buy a $5000 car. Forget the myth that old cars require constant expensive maintenance.

19

In tough times, when you are competing with many people for few jobs, you might try negotiating a lower salary to outbid other candidates. For example, offer to accept 20% less than the salary offer for the first six months to one year. This way, the company will save money and they won't be risking so much on a new worker.

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Tips

Provide Details.

Please be as detailed as possible in your explanation. Don't worry about formatting! We'll take care of it.
For example:Don't say: Eat more fats.Do say: Add fats with some nutritional value to the foods you already eat. Try olive oil, butter, avocado, and mayonnaise.

Tips

Focus first on increasing monthly cash flow. Increasing extra income by even $200 per month can put your mind at ease a little.

Clipping coupons can be time consuming, but it will save you money

Finally, Reduce credit card debt. Your long-term goal should be to have $0 in credit card debt. Good credit is helpful, but in a personal financial crisis, it's not as important as having actual cash savings in the bank and an increased monthly cash flow.

Reduce monthly spending as much as possible. Remember, your biggest savings will happen by cutting housing costs and food costs.

Spend 80% of your time focusing on generating more income and saving that income (even if it means odd jobs, extra hours, or working unglamorous positions)

Focus next on building actual savings (money in the bank or investment account, not just cutting spending). Studies show that people feel more secure with having more savings than with a better paying job. Open a separate savings account if you need it to organize your money.

Warnings

don't get a loan to help-- even if it's interest free from a friend. more debt will only hurt you.

don't waste time cutting minor, trivial expenses. Aim for the big ticket items: Housing and food, which accounts for the majority of personal financial expenses.

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